There's a misconception that one can start their investment journey only with big money or a large lump sum. Wealth creation, though, is often driven more by consistency than by the amount invested. Even if you can set aside around Rs 500 every month after meeting your expenses, you can begin your investment journey through a Systematic Investment Plan (SIP).
SIPs allow investors to invest a fixed amount in mutual funds at regular intervals, making them suitable for salaried individuals, first-time investors and those looking to build wealth gradually.
But the main question arises: Can Rs 520 investment make you rich?
ALSO READ | Who May Face Income Tax Scrutiny? What CBDT Guidelines For FY 2026-27 Say
Can A Rs 520 Monthly SIP Make You Rich?
A Rs 520 monthly SIP alone is unlikely to make you rich. Over a period of 5 years, your investment would grow to around Rs 42,800. In 20 years, your total investment would be around Rs 1.24 lakh.
Assuming an annualised return of 12%, the investment could grow to approximately Rs 5.19 lakh through the power of compounding.
Let's see how much Rs 520 can grow in different time span through SIP:
Investment: Rs 520 monthly
Time period: 5 years
Interest rate: 12% per annum.
Total investment value: Rs 31,200
Estimated returns: around Rs 42,800
Now, the same amount will grow to Rs 1.20 Lakh in 10 years.
Investment: Rs 520 monthly
Time period: 10 Years
Interest rate: 12% per annum.
Total investment value: Rs 62,400
Estimated returns: around Rs 1.20 Lakh
When you leave it for 20 years, it can give you a return of Rs 5.19 lakh.
Investment: Rs 520 monthly
Time period: 20 Years
Interest rate: 12% per annum.
Total investment value: Rs 1.24 Lakh
Estimated returns: around Rs 5.19 Lakh
How To Build A Bigger Corpus
While this represents substantial growth compared to the amount invested, building significant wealth generally requires increasing your investments as your income rises.
ALSO READ | Income Tax Filing 2026: Why You Must Declare Every Active Bank Account While Filing ITR
The most effective way is to invest in a Step-Up (Top-Up) SIP, which allows investors to increase their monthly SIP amount every year by a fixed percentage, such as 10% or 15%.
Note: The earlier you start and the more consistently you increase your investments, the greater the potential to achieve your long-term financial goals.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
